I can become stronger by paying salaries. I have one billion employees!

Chapter 364 Net Profit of 239.7 Billion! Series A Funding: Aurora Future OS's Guinea Pig!

Inside a meeting room in the headquarters building of Pinbei.

On a 100-inch LED screen, the words "Pinbei Mall 2012 Year-End Report" are clearly displayed.

Deepen our presence in lower-tier markets and empower the agricultural ecosystem!
User growth × Supply chain upgrade × Technological innovation!
After finishing the first paragraph, Hu Yun glanced up at Chen Yansen's expression. Seeing the big boss nod in satisfaction, he continued:

"Total revenue was RMB 250.7 billion, of which online marketing and advertising services accounted for RMB 132.9 billion, or 53%; transaction services (commissions, profit margin) accounted for RMB 117.8 billion, or 47%."

"The gross profit was RMB 160.4 billion and the net profit after tax was RMB 123.2 billion. It is not difficult to see from the trend line chart that the growth rate was fastest in Q3 and Q4, accounting for almost 64% of the annual performance output."

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

123.2 million?
Compared to Orange Technology, Pinbei's earning power is nothing short of absurd. With just a variety of marketing tools, it has managed to extract 8% of the transaction commission from the pockets of more than 100,000 merchants.

Huang Zheng certainly has a knack for making money!
Although Alibaba's annual GMV exceeded one trillion yuan, in terms of revenue and net profit, it may not be able to compare with Pinduoduo.

In fact, Chen Yansen guessed correctly. At that time, the CEO of Hangzhou Ali was also holding an end-of-year financial meeting.

Ali's GMV grew from 6200 billion last year to 10700 trillion, making it the world's first e-commerce platform with a transaction volume exceeding one trillion. Its revenue was 496 billion, gross profit was 317 billion, but net profit was only 76.7 billion.

Unfortunately, Alibaba has spent a lot of money in the past year, both raising funds to repurchase shares and participating in several financing projects for Kuaidi Dache and Kuaipao.

"Pinbei has 2.9 million annual active buyers, 3.9 million cumulative user registrations, 1.8 million monthly active users, 6700 million daily active users, and an average annual consumption of 1094 yuan per person."

“According to user profiles, Pinbei’s buyers are concentrated in second- and third-tier cities, mainly in East China, South China, and Central China, followed by North China and Northeast China, while Northwest and Southwest China account for the least, at only 7.3%.”

Hu Yun then went on to say that he had released a user distribution map and a growth funnel chart.

"Agricultural product GMV reached 412.6 billion yuan, with 57 new county-level supported production areas. The 'farmland cloud group buying' model in cooperation with Yunsu Express has successfully shortened the circulation links of agricultural and sideline products by 41%, and cold chain logistics covers 374 county-level warehousing centers."

"In addition, the 'New Brands Program' has incubated 2473 factory brands. Bestselling products include home textiles from Nantong, small appliances from Cixi, and children's clothing from Zhili. During the Double Eleven promotion, 12 'new brands' achieved single-store sales of over 1000 million yuan, and 63 achieved sales of over 500 million yuan."

Hu Yun was extremely well-prepared, giving a detailed report on everything from core data to in-depth cultivation of lower-tier markets, breakthroughs in the agricultural supply chain, and technology innovation-driven modules, as well as the shortcomings of supply, demand, and the technology platform.

ROI and cash flow analysis have also been added!

The meeting did not end until two hours later.

Chen Yansen glanced at his watch and, seeing that it was still early, called Liao Wei over and handed him the logistics algorithm he had written earlier.

Not long after, Liao Wei arrived, grinning as he pushed open the office door and plopped down to Chen Yansen's right.

"Boss, shall I begin?"

After Liao Wei connected the screen and cast it, he tentatively asked a question.

Chen Yansen looked up at the PPT's cover slogan, "Efficient Connections, Intelligent Creation of the Future," and couldn't help but smile as he asked, "You came up with this yourself?"

“Boss, don’t look down on me. The company reimburses me for over 100,000 yuan a year for my MBA courses. If I don’t study hard, wouldn’t I be a beast?”

Liao Wei straightened his back, looking quite serious.

"Alright, enough rambling! Keep it short and try to keep it under half an hour."

Chen Yansen waved his hand and gave the order.

Half an hour?

Liao Wei swallowed hard. He considered the amount of content in the PPT and realized he would have to slow down his speech.

"Yunsu Express's annual revenue was 497.4 billion yuan, net profit was 3.5 million yuan, and cash flow was 39.1 billion yuan. However, 23.4 billion yuan was paid to Air China for the purchase of aircraft, which is expected to be completed and delivered in September."

"The business volume reached 34.3 billion parcels, with an average daily parcel volume of 940 million parcels, a market share of 52.7%, and an average revenue of 14.5 yuan per parcel; the air cargo volume reached 19 tons, with eight cargo aircraft in operation and 31 routes."

In the past, subordinates would report to Liao Wei, but this time it was Liao Wei reporting to the big boss.

He thought he wouldn't be nervous, but when he saw Chen Yansen's face, his mind went completely 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 PowerPoint presentation.

It's worth noting that Yunsu Express waged a price war with STO Express, YTO Express, ZTO Express, and Yunda Express from January to the end of August, losing billions of yuan in the process. It's truly remarkable that Liao Wei was able to turn a profit in Q4.

Looking at the core financial indicators, the $18 billion in financing from the three giants, Huake, China Merchants, and Huaxin, has been mostly spent. Excluding the payment for the purchase of aircraft, Yunsu now only has 15.7 billion yuan at its disposal.

However, Chen Yansen is not worried. After crushing the three major express delivery companies, Yunsu has achieved a gross profit of over 6 million yuan per month (excluding labor costs) through price increases and air freight business, which is enough to maintain the current growth trend.

Time-sensitive express delivery accounts for a small percentage, but the revenue per shipment is high; economy express delivery accounts for 60%, focusing on low profit margins and high sales volume; same-city and cold chain businesses also contribute a considerable portion of revenue.

Based on the average business volume in Q4, Yunsu Express's gross profit for the whole year is estimated at 70 billion yuan, and its net profit at 20 billion yuan.

With the popularization and development of e-commerce and logistics, net profit may increase to 100 billion or even 200 billion in three to five years, but this figure is already the upper limit of the industry.

If they want to go further, they must expand outwards and enter the Southeast Asian, European and American markets.

"Food delivery, express delivery, and ride-hailing services—it's like an Ironman triathlon: the employees don't make money, and the company doesn't make any money either."

Chen Yansen chuckled, and couldn't help but think of Feiyu Technology's year-end financial report: annual sales of over 6 billion yuan, revenue of over 2 billion yuan, average commission rate of nearly 40%, and net profit of over 1 billion yuan.

It's still more profitable to sell goods via live streaming!

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

The hardware and network conditions in China are not yet sufficient, but it can be done in North America.

Even without live streamers, it's no problem. County-level TV stations across the country have trained a large number of shopping program hosts, whose professionalism is in no way inferior to the top live streamers who will become top sellers in the future.

In Chen Yansen's view, these people simply didn't catch the right time. Otherwise, they could have tens of millions of fans, earn several million dollars a day, and then condescendingly criticize: "Where are the products I sell expensive? It's just that you're not working hard enough."

But then he thought again, there was no need to rush.

After Liao Wei finished his report, Chen Yansen rested for a while, then pulled Liao Wei along with Cao Dahua, Xiao Jun, and others, and headed straight for the canteen.

At 2 PM, the year-end reporting session for the Kuaipao project began, followed by ByteDance, Kuaidi Dache, and Gaode Maps.

The following morning, Orange Pay, Today Technology, OFO Bike, Mimo, and Xiaohongshu, among other products, also gave their work reports.

It is worth noting that Orange Pay's "Collect Five Blessings and Share 1 Million Yuan in Cash" campaign will launch on January 25th, and will be linked with products such as Kuaidi Dache, Kuaipao, OFO Bike, and Pinbei. You can get an extra card every day when you take a taxi, order takeout, ride a bike, or shop online.

The combined net profit of more than a dozen holding subsidiaries amounted to 239.7 billion yuan!
Many companies, wide range of businesses, but low profits!
After seeing off Pei Yi, Xiao Jun, Hu Weiyi, and others, Zhuxianzhuang Science and Technology Park returned to its usual tranquility, with just over two weeks left before the Virtual Academy's holiday. Chen Yansen spent all his time with Mike Keller and Wu Shengyu, and the development of the Tiangong T100 chip progressed rapidly. After switching to the Orange Z1 instruction set, the number of instructions and circuit planning were streamlined, and the computing speed and energy efficiency were optimized and improved by more than 40%.

In other words, the Orange Z1 outperforms ARM by 40%.

On January 10th, Luo Yonghao announced Smartisan OS and released a CG image of the Smartisan T1 phone, with a new product launch event expected after the Chinese New Year.

With more and more competitors entering the mobile phone manufacturing industry, Meizu's Huang Zhang, OPPO's Chen Yongming, and others are becoming increasingly anxious. They are not afraid of competition, but they are afraid of not being able to compete with amateur players like 360 ​​and NetEase.

After comprehensive analysis, the two agreed that the success of 360 and NetEase was mainly due to their use of Orange Technology's mobile operating system, supply chain, and OEM services.

But they weren't comfortable with having the two of them completely hand over the mobile phone business to Orange Technology.

Just as the two were struggling with their decision, Lei Yijun dialed Chen Yansen's number: "Mr. Chen, I've figured it out. Xiaomi 2A and Xiaomi 2S will all be switched to the Aurora OS system."

Chen Yansen put down his computer, walked out of the chip design department office, and went to the balcony to reply: "Mr. Lei, it's actually very simple for Xiaomi to defeat 360 Mobile. Orange Technology has a mobile operating system with even better performance."

With Master Lei eagerly seeking cooperation, Chen Yansen naturally seized the opportunity to promote the idea.

"Aurora OS version 1.6?" Lei Yijun asked.

"Whether it's Aurora OS or MIUI, they are ultimately customized versions based on the Android system. I don't want to hand over Orange Technology's fate to Google."

Chen Yansen leaned against the wall, gazing at the vast expanse of white snow below, and said softly.

Google's decision not to charge patent royalties for the time being does not mean it will never do so.

Lei Yijun immediately understood Chen Yansen's meaning and asked, "So, like Ali, Orange Technology has developed a brand new mobile operating system?"

"In the end, Ali Cloud OS is still a knock-off system compatible with Android. Aurora Future OS is different. From programming language to kernel architecture, it avoids the Java ecosystem and Linux kernel code patents," Chen Yansen explained slowly.

Aurora Future OS?

Lei Yijun quickly understood that Chen Yansen wanted to use millet for experiments.

"Mr. Chen, Xiaomi only ships a few million units a year, which is less than 360 phones. Either Xiaomi uses Aurora OS 1.6, or you let Zhou Hongyi use Aurora Future OS?"

Lei Yijun chuckled dryly and cautiously made the suggestion.

"Doesn't President Lei trust me?" Chen Yansen questioned.

I believe you as a ghost!

Regardless of whether a new system is self-developed or not, it will have many shortcomings in terms of compatibility and application ecosystem.

Chen Yansen clearly wanted to use Xiaomi as a guinea pig, how could Lei Yijun possibly agree to that?

"Mr. Chen, I believe in Orange Technology's capabilities, but if the application ecosystem can't keep up, it will inevitably affect Xiaomi's sales." Lei Yijun smiled wryly and reluctantly refused.

"It's free for you to use," Chen Yansen added.

Upon hearing this, Lei Yijun immediately became interested and asked with an awkward smile, "Does it support switching system modes?"

In other words, Xiaomi can help Orange Technology promote the Aurora Future OS system, but users must be given the freedom to choose.

A phone compatible with two operating systems was extremely rare in 2012, but it will be a basic feature in the future. For example, the Galaxy Note 9 supports Dex desktop mode and the Android operating system; the Huawei Mate 30 Pro can quickly switch between EMUI and HarmonyOS.

Their goals are all very simple: to become an alternative to Android.

"If you sell a Xiaomi phone with the Aurora Future OS system, I will waive the patent usage fee for the Aurora OS system for you, and the system switching will be waived."

Chen Yansen thought for a moment and said.

“No problem,” Lei Yijun readily agreed.

In this way, if it doesn't sell, it can't be blamed on him; for Xiaomi, it can also save on patent licensing costs.

Three minutes later, Chen Yansen hung up the phone, shook his head helplessly, and said that reintroducing a new standard was indeed very difficult, but 2013 was the best time.

If we wait a few more years, there won't even be a possibility left.

Next, he also needs to communicate with internet companies such as Tencent, Ali, NetEase, Sohu, and Sina to develop corresponding Aurora Future OS versions of the apps with the highest daily active users, and to open-source and share the application development language and platform.

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

at the same time.

Lin Chenfeng from Tencent Venture Capital, Shen Nanpeng from Sequoia Capital, and Zhang Lei from Hillhouse Capital signed a letter of intent and a draft equity transfer agreement with Hu Weiyi at the headquarters of Xingchi Technology in Hangzhou.

The three companies jointly invested 3.9 million yuan, valuing OFO bicycles at 26 billion yuan post-investment.

The news caused an uproar in the domestic investment community.

Is OFO bicycle worth 26 billion?

With only 80,000 bicycles and a daily revenue of 300,000 yuan?
For a time, many people began to get excited. If even this thing could 'scam' hundreds of millions of investments, then what were they waiting for?
Just copy it!

Following group buying and food delivery platforms, bike sharing has also become a hot trend pursued by capital and entrepreneurs.

Various bike-sharing companies sprang up overnight, like mushrooms after rain.

Cheng Wei, far away in Yanjing, cursed his bad luck under his breath, and then accelerated the pace of expansion. Even in the dead of winter, Didi Bike deployed another 50,000 shared bikes to North China, making it the shared bike brand with the largest number of bikes deployed.

Meanwhile, Wang Fengli, also based in Yanjing, quietly established Tugo Technology Co., Ltd.

He had no idea how many bicycles OFO, Didi, and Ofo had been lost in total in 2012.

Car sharing might be a good business gimmick, but it won't work in the country.

The investment institutions didn't care and blindly invested 3000 million yuan in him. With this money, Wang Fengli developed an app and looked for suppliers, eventually setting his sights on the Mercedes-Benz Smart.

Small and lightweight, it is perfect for the local car parking environment in Yanjing.

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

(End of this chapter)