58 City Yiu Jingbo: Don't care about giving up profits

Absrtact: Originally thought the battle ended, but actually this market just started. Sitting in a 58-city conference Room, Yiu Jingbo the current mood to reporters in the 21st century Economic report. Just a few days ago, net announced the completion of the fifth round of 200 million dollars

"I thought the fight was over, but actually the market is just beginning," he said. "Sitting in the 58 City conference Room, Yiu Jingbo The current mood to the 21st century economic reporter," he says. Just a few days ago, net announced the completion of the fifth round of funding for a 200 million dollar scale. NET CEO Yang Hao-hu even put words, net will be listed in 2015.

After net get a new round of financing, it is inevitable to increase market investment, in order to gain more market share. According to net investors, today's capital President Xu, "the industry's first standard is at least 30% to 40% of the market share in the industry." Thus, the classification information industry pattern seems to have the possibility of reconstruction.

In response, Yiu Jingbo said publicly at the two quarterly earnings meeting in the City of 58: "We are aggressively investing in the market and innovating our business, and we don't care about giving up profits in the next few quarters." "The Yiu Jingbo of the word stirred thousands of waves. 58 The city's two-quarter earnings released the following day, 58 shares in the city fell 8%.

Yiu Jingbo insists that "58 of the city's valuations are not profit-making because they are bullish on your growth and future space," he said. ”

As a listed company, increasing the market input means abandoning the short-term profits, and even invite investors to query, to maintain the status quo, it is inevitable that the loss of market share, hinder the development of enterprises. As the founder and manager of the 58 city, what choice will Yiu Jingbo make? In the face of rival ambitions, how to deal with the city of 58?

"We don't tie our hands and feet as we go public, do what we do, and don't care about the short-term price swings," he said. "In an interview with the 21st Century Economics report, Yiu Jingbo said.

The Battle of the capital

After large-scale financing, net will have more funds to market, Yang Hao-hu said, this year will invest 200 million yuan advertising fees, of which 100 million yuan for advertising, 100 million yuan for user subsidies.

Yiu Jingbo is also not weak, "we said at the two quarterly earnings meeting, 58 of the city will be more radical investment, and even may become a loss of business." He said that 58 of the city's market investment will match the current market heat.

Compared with the support of net investors, 58 of the same city is not a person in the fight. This June, Tencent spent 736 million dollars to buy 58 of the city's 19.9% shares. 58 with the city will be how to cooperate with Tencent, but also become a matter of concern.

"This is a company we respect and Add." "When it comes to Tencent, Yiu Jingbo is so expressive. "58 and Tencent to provide users with better service: 58 City is an information-oriented platform, we hope that the interpersonal relationship, communication functions combined to 58 with the city, improve trust and the smooth degree of communication; Tencent has a large number of users, but there is no way to contact a large number of online merchants, 58 of the city just have this ability. "Yiu Jingbo introduced.

In the same period, when Net announced the financing information, 58 of the same city to the U.S. Securities and Exchange Commission submitted documents, documents show that Goldman Sachs has just bought about 120 million dollars worth of 58 shares in the same city. In the interview, Yiu Jingbo further revealed that now 58 of the city's accounts have more than 600 million dollars in cash.

Business Innovation

58 with the city Q2 earnings showed that 58 of the city's second quarter gross income of 64.65 million U.S. dollars, a growth of 83.9%, the second quarter net profit of 11.18 million U.S. dollars, the year-on-year increase of 125.6%, the number of paid membership to 510,000, platform active merchant number of more than 7 million. Overall flow to record high, mobile-end traffic accounted for up to 54%.

This is a pretty good business performance, but in the Yiu Jingbo "do not care in the next few quarters to give up the profits completely" after the words, ushered in the stock price 8% decline.

"The most important strategy of this earnings report is to be more aggressive in innovation and market investment." It turned out that the battle was over, but actually the market was just beginning. There is still room in the mode and breadth of the entire localized life service, so we still have to take this opportunity. "In the end of August and the 21st century economic reporter's exchange, Yiu Jingbo on the stock price decline is quite calm." In his view, the stock price of such a situation is certainly expected.

Yiu Jingbo's old Comrade-in-arms, 58 City chief strategy officer Xiaohua to Yiu Jingbo's stance also quite support. "Why Q2 Yao will have so much determination to say what he might be, because old Yao has confidence in himself, so he will talk about the crisis more." Xiaohua said.

Yiu Jingbo has repeatedly mentioned innovative business, including the 58 new financial operations in the city.

It is understood that 58 city has set up a financial division, by 58 with the city's chief information quality Officer He Song is responsible for the implementation of independent KPI, development goals and budget finance. According to 58 of the city's financial services platform display information, the platform's business includes consumer loans, corporate loans, car loans, housing loans four major sectors.

"The first is to establish a financial diversion platform, to do the aggregation of financial products; The second is the combination of 58 with the city's customers, with the Asian Union Financial (Asia Joint Finance Co., Ltd.) and other partners to customize the wealth management products for users; the third is based on the 58 city scene for the C-end users to provide services, such as to solve the "For 58 of the city's financial products development vision, Xiaohua further introduction."

Turning to more innovative products, Yiu Jingbo said, "a strategic product will be developed by the end of the year." But declined to disclose more information.

Subtract by investing

Yiu Jingbo has said publicly that 1 billion dollars will be spent over the next 3-5 years to spur new business incubation and investment acquisitions.

According to the 21st Century Economic report reporter learned that 58 of the city's investment team divided into two groups, a group of people have entered the B-round, c-round maturity enterprises, and the other group is mainly responsible for start-up enterprises. "Besides dining, the rest is talking. Xiaohua revealed that the company currently in contact with the real estate, recruitment, automotive, decoration and other areas related to local life services.

Over the past two months, 58 of the city's investment teams have contacted more than 30 start-ups and have completed some investments, and more investment projects have entered the DD (due diligence) phase.

"We want to be the most active player in the field," he said. "The layout is not just an attitude, it's an ability," Xiaohua says.

In Xiaohua's words, if a company still needs large-scale financing to talk about the layout, is to use war money to talk about the future. If 58 with the city did not open the channel of capital, there is no cash flow and profitability of the improvement, not enough funds and talent reserves, no good relations of cooperation, must be afraid to talk about the layout.

For the 58 city, the investment in the Life service domain is actually a way to reduce the team energy input. Xiaohua in an interview repeatedly stressed that 58 of the city's investment is to improve the core competitiveness, rather than simple financial returns.

First, investment has made 58 of the city more focused in its main business areas, Chen Xiaohua said. 58 The city after the investment, you can safely let the entrepreneur to do, the main team has one thing to consider. Second, let 58 with the city for the future of the change model to explore, and entrepreneurs learn from each other, open up our horizons and experience. Third, we will reduce the number of competitors in the future so that they do not put the competition against me.

"We want to be a major company in the next 10 years, so there's no need to worry too much about the volatility of stock prices." It's a harder and more exciting road. Speaking of which, Yiu Jingbo's fist fell lightly on the table several times.