Chapter 1189: The Indignant Wu Feng

Everyone was discussing what the valuation of Dongdong Mall’s second round of financing should be. Only Wu Feng sighed:

"Made, in the eyes of those venture capital companies, the e-commerce platform is the meat and potatoes, the golden phoenix, and our electric bicycle company is the chicken in the water.

Hey, I didn’t even look at the valuations given one by one. You must know that we are the leader in the electric bicycle industry. "

"Haha, Lao Wu, the valuation is too low, so don't go public. Anyway, it will be very satisfying to make hundreds of millions every year."

"That is, it will be even more embarrassing if you don't even have enough subscriptions when you apply for listing!"

Hearing Wu Feng's angry look, everyone not only showed no comfort, but also looked gloating about his misfortune.

In the second half of this year, Fengfan Technology began to raise funds to prepare for listing, but the first round of financing was a bit cold, and it is still being discussed.

The highest valuation offered to Wu Feng is only 6 billion, which is a naked insult to Wu Feng.

Because Fengfan Technology’s revenue in the first half of the year was 4 billion, there is no problem that the full-year revenue will reach 8 billion this year.

However, the valuation given by those venture capital companies was even lower than the revenue, and the most important thing was that not many people wanted to invest in Fengfan Technology. He had been depressed for a long time.

Now comparing it to the scene at Somedong Mall where everyone was waving checks and rushing to give away money, he felt even more unbalanced!

In the end, Chen Changliu patted Wu Feng on the shoulder and said:

"Didn't I tell you back then that it is more difficult for electric vehicle companies to go public than other companies, and the valuations are not as high as those of Internet companies.

I think you should know the reason after all these years, right? "

After hearing what Chen Changliu said, everyone became quiet and listened quietly.

Because this is something at the strategic level, and Chen Changliu's ability in strategy and vision is obvious to all in the industry. He said that no one would dare to be ranked first if he ranked second.

So now that there is such an opportunity to listen to the discussion between him and Wu Feng, of course they cannot miss it. After all, although they are not on the same track, they have something in common.

Wu Feng sighed, nodded and said:

"Yeah, I know.

There are many reasons why it is difficult for electric bicycle companies to go public. They are nothing more than industry image and cognitive issues, the impact of policy and public opinion, difficulty in ensuring profitability sustainability, relatively low technical content, and limited industry development space.

Let’s first talk about the objective reasons that we cannot control.

Such as industry image and perception issues

Most of the users of electric bicycles are ordinary people. In the eyes of some people, they are relatively low-end travel tools, which makes the electric bicycle industry as a whole labeled as "grassroots".

This image makes those investors and investment institutions in the capital market who pursue the so-called "high-end" and "technological sense" pay less attention to and recognize the industry.

But we are also changing. Our high-end products are already on the market. The lowest price is more than 5,000, and the highest price is 7 or 8,000. We are the only company in high-end electric bicycles.

But we still can’t get rid of the low-end hat. What can we do?

Let’s talk about the problem of limited space for industry development.

With the continuous improvement of urban transportation systems and the diversification of consumer travel methods, the market growth space of electric bicycles is gradually restricted.

In terms of the influence of policy and public opinion, the country’s management policies for electric bicycles have been continuously adjusted in the past. At some stages, official public opinion had certain negative views on electric bicycles.

For example, there are concerns about its safety and impact on traffic order.

This uncertainty in the policy and public opinion environment has caused investors to have doubts about the development prospects of electric bicycle companies.

There is really nothing we can do about this. Take Yangcheng as an example. In the past two years, policies have been introduced to restrict the licensing of electric bicycles on the road. "

At this point, Wu Feng felt a little helpless. His father was not on his side on this point.

Wu Feng's analysis made everyone nod. It was reasonable and well-founded. This guy was completely different from the usual idle guy.

Chen Changliu and Li Jiwei were not surprised by Wu Feng's lucid analysis.

Outsiders see Wu Feng as a carefree person who likes to have fun, but only those who know him well know that Wu Feng is not stupid at all, it's just that he is a little easily satisfied.

Wu Feng took a breath, and then said with an angry look:

“We have no control over the policy-related things above, but any industry without policy risks is something that cannot be quantified.

And our performance is outstanding in some data that can quantify the strength of the company.

For example, the problem of difficulty in ensuring profitability sustainability that exists in other electric bicycle companies does not occur in Fengfan.

Competition in the electric bicycle industry is fierce. As far as I know, there are more than 2,000 domestic companies holding licenses to produce them.

Markets of all sizes are highly saturated. In order to compete for market share, companies often need to invest a large amount of money in marketing promotion, product research and development, and channel construction.

At the same time, factors such as raw material price fluctuations and rising labor costs have also put greater pressure on the profitability of enterprises, leading to unstable profitability.

But our Fengfan Technology is an exception. Which year has it not been profitable since its establishment? And both revenue and profits continue to increase.

This year's revenue will exceed 8 billion, and net profit will be more than 1.3 billion. What's wrong with such profitability?

There is also the problem of relatively low technical content that most companies have.

The core technology of electric bicycles is mainly concentrated in components such as batteries, motors, and controllers, and the technology of these components is mostly in the hands of suppliers.

Other electric bicycle companies have relatively low technical content in vehicle assembly and appearance design, lacking the support of core technology, which makes the companies less competitive in the capital market.

However, with the help and advice of Changliu, Fengfan Technology has invested a lot of money in research and development. Except for the battery purchased from Zhihuajia, the motor controller is our own.

Not to mention the appearance design, other electric bicycle companies are imitating us, and we are Fengfan, the industry vane.

We have so many highlights, but the valuation given to us is still so low, which makes me angry. "

Speaking of this, Wu Feng picked up the wine on the table and drank it in one gulp.

Some of the data Wu Feng said were still a bit surprising, especially in terms of revenue.

Although everyone knew that Wu Feng's Fengfan Technology was the leader in the electric bicycle track and its revenue should not be low, they did not expect that its revenue had exceeded 8 billion after only a few years of establishment.

You should know that there are more than 1,600 listed companies in China now, but the number of companies with revenue and profits comparable to Fengfan Technology is definitely less than 5%. No wonder Wu Feng was depressed and indignant.

PS: The typos were updated first and then corrected.