Chapter 359: Net Profit 239.7 Billion

In a conference room of the Pinyi headquarters building.

On a 100-inch LED screen, the words "Pinyi Shangcheng 2012 Year-End Report" were clearly marked.

Deep cultivation of the lower-tier markets, empowering the agricultural ecosystem!

User growth × Supply chain upgrade × Technological innovation!

After Hu Yun finished the first paragraph, he looked up and glanced at Chen Yansen's expression; seeing the big boss nod in satisfaction, he continued:

"Total revenue is 25.07 billion Billion Huayuan, of which online marketing and advertising service revenue is 13.29 billion, accounting for 53%; transaction service (commissions, buy-sell spreads) revenue is 11.78 billion, accounting for 47%."

"Gross profit is 16.04 billion Billion Huayuan, net profit after tax is 12.32 billion; from the trend line chart, it is not difficult to see that Q3 and Q4 had the fastest growth, accounting for nearly 64% of the annual output."

Hu Yun enlarged the visualized data table for everyone to view.

12.32 billion?

Compared with Chengzi Technology, Pinyi's money-making ability is nothing short of perverted; relying solely on a wide variety of marketing tools, it forcibly took an 8% transaction commission from the pockets of over 100,000 merchants.

Huang Zheng really has a set of methods when it comes to making money!

Although Mama Ali's annual GMV exceeded one trillion, in terms of revenue and net profit, it really might not be able to compare with Pinyi.

In fact, Chen Yansen guessed very accurately; at this moment, the Mama Ali headquarters in Hangcheng was also holding a year-end financial meeting.

Mama Ali's GMV grew from 620 billion last year to 1.07 trillion, becoming the world's first e-commerce platform to break the trillion mark in transaction volume; revenue was 49.6 billion, gross profit 31.7 billion, but net profit was only 7.67 billion.

There was no way; Mama Ali, over the past year, had to raise funds to buy back equity and successively participated in several financing projects for Kuaide Taxi and Kuai Pao, spending quite a lot of money.

"Pinyi's annual active buyers are 290 million, cumulative user registrations are 390 million, monthly active users are 180 million, daily active users are 67 million, and per capita annual consumption is 1,094 yuan."

"Looking at the user portrait, Pinyi's buyers are concentrated in second and third-tier cities, mainly in the East China, South China, and Central China regions, followed by North China and Northeast China; Northwest and Southwest China account for the least, only 7.3%."

Hu Yun continued speaking, then displayed the user distribution map and growth funnel chart.

"Agricultural product GMV is 41.26 billion Billion Huayuan; 57 new county-level supported production areas were added; the 'Agricultural Land Cloud Pinyi' model, in cooperation with Yunsu Express, successfully shortened the circulation links of agricultural and sideline products by 41%, and cold-chain logistics covered 374 county-level warehousing centers."

"Additionally, the 'New Brand Plan' incubated 2,473 factory brands; Hit product cases include home textiles in Nantong, small appliances in Cixi, and children's clothing categories in Zhili; during the Double 11 big promotion, 12 'New Brands' had single-store sales exceeding 10 million, and 63 exceeded 5 million."

Hu Yun's preparation was extremely thorough; from core data to deep cultivation of lower-tier markets, breakthroughs in agricultural supply chains and technology-driven innovation modules, to the shortcomings in supply, demand, and the technology middle platform, he reported in detail.

At the same time, ROI and cash flow analysis were added!

It was not until two hours later that the meeting finally ended.

Chen Yansen raised his hand to look at his wristwatch; seeing that it was still early, he called Liao Wei over and handed him the logistics algorithm he had written previously.

Not long after, Liao Wei rushed over, pushed open the office door with a grin, and plopped down on Chen Yansen's right side.

"Boss, shall I start then?"

Liao Wei connected the screen projection and asked tentatively.

Chen Yansen looked up, saw the cover slogan of the PPT 'Efficient Connection, Smart Creation of the Future', and couldn't help but smile as he asked, "Did you think of that yourself?"

"Boss, don't look down on people; the company reimburses me over 100,000 yuan a year for MBA courses; if I don't study seriously, wouldn't I become a beast?"

Liao Wei straightened his back, looking as if he meant every word.

"Alright, stop being cheap! Get to the point, try to keep it within half an hour."

Chen Yansen waved his hand and ordered.

Half an hour?

Liao Wei swallowed; recalling the content volume of the PPT, he feared he would have to slow down his speaking speed.

"Yunsu Express annual revenue is 49.74 billion, net profit 350 million, cash flow 3.91 billion, but 2.34 billion was paid to Air China for aircraft purchase; modification and delivery are expected to be completed in September."

"Business volume is 3.43 billion parcels, daily average pickup volume 9.4 million parcels, market share 52.7%, revenue per parcel 14.5 yuan; air cargo volume 190,000 tons, eight cargo planes in use, 31 route pairs."

Previously, subordinates always reported work to Liao Wei; this time, Liao Wei was reporting to the big boss.

He thought he wouldn't be nervous, but seeing Chen Yansen's face, his mind instantly went blank; he could only read from the PPT, afraid of making a mistake.

Chen Yansen found Liao Wei's speaking speed too slow, so he simply started looking at the PPT.

It must be known that to fight for market share against the Three Express and One Delivery, Yunsu Express waged a price war from January to the end of August, losing several billion in funds; yet Liao Wei managed to turn a profit from a loss in Q4, which was truly not easy.

Looking at core financial indicators, the 1.8 billion USD financing given by the three giants Huake, China Merchants, and Huaxin had already been spent almost entirely; excluding the payment for purchasing aircraft, the funds currently available for Yunsu Express to dispose of were only 1.57 billion Billion Huayuan.

However, Chen Yansen was not worried; after crushing the Three Express and One Delivery, Yunsu, through price hikes and air cargo business, had a monthly gross profit (excluding labor costs) exceeding 600 million, enough to maintain the current growth trend.

Time-sensitive express delivery accounts for a small proportion but has high revenue per parcel; economic express delivery accounts for 60%, focusing on thin margins and high volume; same-city and cold-chain businesses also contributed a considerable portion of revenue.

Estimated based on the average business scale of Q4, Yunsu Express's annual gross profit is about 7 billion, and net profit about 2 billion.

With the popularization and development of the e-commerce and logistics industries, net profit might rise to 10 billion or even 20 billion in three to five years, but this figure is already the industry ceiling.

If one wants to go further, the only way is to expand outward and enter Southeast Asian, European, and American markets.

"Food delivery, express delivery, and ride-hailing are indeed the ironman triathlon; employees don't make money, and the damn company doesn't make money either."

Chen Yansen sneered, unable to help but think of Feiyu Technology's year-end financial report: annual sales over 6 billion, revenue actually over 2 billion, average product commission rate close to 40%, and net profit as high as over 1 billion.

Making money through live-stream sales is still the way to go!

Thinking of this, he immediately wanted to call Mao Chaorong in.

Domestic hardware and network conditions are not yet sufficient, but the North American region can be done.

It doesn't matter if there are no streamers; county-level television stations across the country have cultivated a large number of shopping program hosts; in terms of professionalism, they are not inferior to the top sales streamers of the future.

In Chen Yansen's view, these people simply missed the good times; otherwise, they could have possessed tens of millions of fans, earning several small goals daily, and then arrogantly scolding a few times: "Where is the product I sell expensive? It's just that you aren't working hard enough."

But then he thought again, there was no need to rush in a single moment.

After Liao Wei finished his report, Chen Yansen rested briefly, then took Old Liao, along with Cao Dahua, Xiao Jun, and others, and walked straight towards the cafeteria.

At 2 PM, the year-end report work for the Kuai Pao project began, followed closely by Byte, Kuaide Taxi, and Gao De Maps.

The next morning, Chengzi Payment, Jinri Technology, ofo bicycles, Mimo, and Xiaohongshu, among other products, also carried out work reports in succession.

What was worth Chen Yansen's attention was that the Chengzi Payment activity 'Collect Five Blessings, Split 100 Million Cash' would launch on January 25 and link with Kuaide Taxi, Kuai Pao, ofo bicycles, Pinyi, and other products; taking a taxi, ordering food delivery, riding a bicycle, or online shopping could each earn an extra card daily.

The net profits of over a dozen holding subsidiaries totaled 23.97 billion Billion Huayuan!

Many companies, broad business, little money made!

After seeing off Pei Yi, Xiao Jun, Hu Weiyi, and others, the Zhuxianzhuang Technology Park returned to calm; more than two weeks remained before the Virtual Courtyard's holiday. Chen Yansen spent every day with Michael Keller and Wu Shengyu; the development of the Tiangong T100 chip progressed by leaps and bounds. After switching to the Chengzi Z1 instruction set, the number of instructions and circuit planning were streamlined, while computing speed and energy efficiency improved by over 40%.

In other words, the Chengzi Z1 outperformed ARM by 40%.

On January 10, Luo Yonghao released Smartisan OS and unveiled CG images of the Smartisan T1 smartphone, with a new product launch conference expected after the Lunar New Year.

As more peers entered the smartphone business, the hearts of Meizu's Huang Zhang and OPPO's Chen Yongming grew increasingly anxious. They feared not competition, but the inability to compete against amateurs like 360 and NetEase.

After comprehensive analysis, the two unanimously concluded that 360 and NetEase succeeded primarily because they utilized Chengzi Technology's smartphone operating system, supply chain, and OEM services.

Yet, entrusting their entire smartphone business completely to Chengzi Technology left them uneasy.

Just as the two were torn, Lei Yi called Chen Yansen: "Mr. Chen, I've figured it out. The Xiaomi 2A and Xiaomi 2S will switch entirely to the Aurora OS system."

Chen Yansen set down his computer, walked out of the chip design department office, and replied from the balcony: "Mr. Lei, actually, if Xiaomi wants to defeat 360 Mobile, it's simple. Chengzi Technology has another smartphone operating system with even better performance internally."

Since Lei Jiaozhu was eagerly seeking cooperation, Chen Yansen naturally took the opportunity to make a sales pitch.

"Aurora OS version 1.6?" Lei Yi asked.

"Whether it's Aurora OS or MIUI, in the end, they are all customized versions based on the Android system. I do not want to entrust Chengzi Technology's fate to Google's hands."

Leaning against the wall, Chen Yansen gazed at the snow-covered ground below and spoke softly.

Google not charging patent fees for now does not mean they never will.

Lei Yi instantly understood Chen Yansen's meaning and immediately pressed on: "So, like Mama Ali, Chengzi Technology has independently developed a brand new smartphone operating system?"

"Mama Ali Cloud OS, in the end, is still a Shanzhai system compatible with the Android system. Aurora Future OS is different; from programming language to kernel architecture, it avoids the code patents of the Java ecosystem and the Linux kernel." Chen Yansen explained slowly.

Aurora Future OS (Aurora Future System)?

Lei Yi quickly understood; Chen Yansen wanted to use Xiaomi as an experiment.

"Mr. Chen, Xiaomi's annual shipment is only a few million units, less than 360 Mobile. How about Xiaomi uses Aurora OS 1.6, while you let Zhou Hongyi use Aurora Future OS?"

Lei Yi let out a dry laugh and tentatively proposed.

"Does Mr. Lei not trust me?" Chen Yansen demanded.

Trust you? No way!

Regardless of whether a new system is independently developed, it inevitably has many defects in compatibility and application ecosystem.

Chen Yansen clearly intended to use Xiaomi as a guinea pig; how could Lei Yi possibly agree?

"Mr. Chen, I believe in Chengzi Technology's strength, but if the application ecosystem cannot keep up, it will inevitably affect Xiaomi's sales." Lei Yi smiled bitterly and refused, forcing himself to do so.

"Use it for free." Chen Yansen added.

Upon hearing this, Lei Yi immediately became interested and asked with a forced smile: "Does it support switching system modes?"

The implication was that Xiaomi could help Chengzi Technology promote the Aurora Future OS system, but users must be given the right to choose freely.

A smartphone compatible with two systems was extremely rare in 2012, but in the future, it would be standard practice; for example, the Shanxing Galaxy Note 9 supported Dex desktop mode and the Android operating system; the Huawei Mate 30 Pro could switch quickly between EMUI and HarmonyOS.

The purpose was pure: to become the 'successor to Android'.

"For every Xiaomi smartphone you sell equipped with the Aurora Future OS system, I will waive the patent fee for one Aurora OS system unit; switching systems is waived."

Chen Yansen thought for a moment and said.

"No problem." Lei Yi agreed readily.

In this way, if it didn't sell, he couldn't be blamed; for Xiaomi, it would also save a sum of patent licensing costs.

Three minutes later, Chen Yansen hung up the phone and shook his head helplessly. Introducing a new standard indeed faced numerous difficulties, but 2013 was already the best timing.

Wait a few more years, and even the possibility would vanish.

Next, he still had to communicate with internet companies like Penguin, Mama Ali, NetEase, Sohu, and Sina, first developing corresponding Aurora Future OS versions for the apps with the highest daily active users, and the application development language and development platform also had to be open-sourced and shared.

Immediately after, Chen Yansen dialed Xiao Ma's phone number.

Meanwhile.

At the Hangcheng Xingchi Technology headquarters, Lin Chenfeng from Penguin Venture Capital, Shen Nanpeng from Sequoia Capital, and Zhang Lei from Gao Ling Capital signed the investment term sheet and equity transfer agreement draft with Hu Weiyi.

The three parties jointly invested 390 million Billion Huayuan, valuing ofo Bike at 2.6 billion post-investment.

Once the news broke, the domestic investment circle erupted in shock.

Is ofo Bike worth 2.6 billion?

Based solely on 80,000 bicycles and 300,000 Billion Huayuan in daily revenue?

In an instant, many began to stir with ambition; if even this thing could be 'bluffed' into securing hundreds of millions in investment, what was there to wait for?

Just copy it!

Following group buying and food delivery platforms, shared bicycles had also become the trend chased by capital and entrepreneurs.

Various shared bicycle companies sprang up like bamboo shoots after rain, appearing overnight.

Far away in Yanjing, Cheng Wei cursed 'fate is bitter', then immediately accelerated his expansion. Even in the dead of winter, Didi Bike deployed another 50,000 shared bicycles to the North China region, leaping to become the shared bicycle brand with the highest deployment volume.

Meanwhile, in Yanjing, Wang Fengli quietly established TuGe Technology Co., Ltd.

He had no idea how many bicycles ofo, Didi, and Xiao Huang Bike had lost in total during the past year of 2012.

Shared cars might be a good business gimmick, but they wouldn't work in the domestic market.

But the investment institutions didn't care; they closed their eyes and invested 30 million in funding. Wang Fengli, holding this money, developed the app while searching for suppliers, finally setting his sights on the Mercedes-Benz Smart.

Small, lightweight, and very suitable for the parking environment in Yanjing.

Wang Fengli ordered 100 units in one go, making the dealer think he was the boss of a taxi company.

(End of Chapter)