Following the big guy to invest $3.5 million, but withdrew early before the IPO. Has this investment made a lot of money?
article丨Female gossip special author: Qingshan Bailu
Some time ago, we calculated the calculation for you how much it costs to do orthodontics in the new middle class.
Now, there is another new question: in the country, how much does it cost for a rich person to see his teeth once?
htmlOn July 2, high-end oral medical service provider Riel Group submitted a listing application on Hong Kong Stock Exchange , intending to list on the main board, giving people a glimpse of the truth.
How high is the patients of Riel Group? Its first clinic is located in the International Building next to Chang'an Street in Beijing and opposite to the International Club. It was the base camp of China International Trust and Investment Company at that time. The U.S. Embassy is the first group client of riel dental .
Although on Zhihu , which claims an annual salary of one million per capita, some people said that in Ruier dental care, the charges are comparable to robbing the bank:
, some media calculated it and based on the annual number of patients who visited Ruier in 2019, 2020 and 2021, the company's average customer price is:
? It seems that although the price is higher than other private dental clinics on the market, it is not a sky-high price. However, looking through the prospectus, I found that the shareholders of Ruier Group are all "Tiantuan Group".
As of the date of the prospectus, Elbrus Investments Pte.Ltd, a subsidiary of Temasek, holds 10.88% of shares of , Goldman Sachs through its two companies, holds 28.24% of , KPCB holds 6.35% of ts through its three companies, Qiming Venture Capital holds 5.54% of ts through its three companies, and HH AGL Holdings Limited, a subsidiary of Hillhouse Capital, holds 5.13%.
In addition, the prospectus disclosed that on March 1, March 5, March 8 and March 22, 2021, several former investors of the E round agreed to invest in Riel as former investors through the signing of a share subscription agreement, including "Ward Ferry", the shareholder of Haidilao .
It is worth noting that in April 2014, when Riel received the third round of investment of US$70 million, Wang Sicong's Pusi Capital also participated. However, this prospectus disappeared.
Wang Sicong, born in 1988, is 33 years old this year. Principal Wang, who is already in his thirties, mainly engaged in investment, but he has made very little achievements in this field before. In this IPO of Ruier Group, did Wang Sicong make money by practicing 500 million yuan? Why did he fall in love with the Riel Group?
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/ Why do you like Ruier Group? /
As for how Wang Sicong's Pusi Capital gets into Ruier Group, there is no trace to be found, but the investment context between Pusi Capital and Ruier Group can be clearly sorted out.
How does Pusi Capital obtain project sources like Riel Group? Neither Pusi Capital nor Riel Group disclosed much to the public. Pusi Capital only told the media before that the way to obtain high-quality projects is through opportunity scanning and connections. But if you think about it carefully, there should be no reason for Ruier Group to refuse such a public figure like Wang Sicong with his own traffic and his back to Wanda.
Wang Sicong himself has always been optimistic about the medical service track. Wang Sicong had said to the media before: "I think the medical service industry is always a sunrise industry, and it will not be too late to enter."
President of Ruier Group Zou Qifang also expressed his appreciation for Wang Sicong: "I have a good impression of Wang Sicong. He is a very professional person. When talking to him, I can feel that he is very upright and upright and has strong professional abilities."
Both parties are optimistic. It is a natural thing for Pusi Capital to invest in Ruier Group.
In fact, it has not been a matter of Wang Sicong's investment in Ruier Group in recent years, and it can even be traced back to 2014. According to Tianyancha , Pusi Capital participated in the C round of financing of Ruier Group in 2014. This is the first time Pusi Capital has involved in the medical field.
In June 2016, Wang Sicong personally visited Chongqing to inspect the store status of Ruier Group, and also appeared in local newspapers in Chongqing as news. If you can gain Wang Sicong's recognition, Riel Group is naturally not bad.
According to the prospectus, Ruier Group was founded in 1999. It is a professional dental chain for high-end people. Its main business is general dental diagnosis and treatment, dental correction and dental implants, etc. Currently, Ruier Group has two brands: "Rier Dental" and "Rier Dental". Ruier Dental mainly serves high-end people, while Ruier Dental is mainly aimed at the mass market.
Rier Group's development was not smooth in the early stage. President Zou Qifang said that whether he could survive was a major problem.Rier Group first opened a store in Beijing, established a complete model through continuous adjustments, and then copied it to other cities, and finally gradually improved.
According to Frost & Sullivan data, after 20 years of development, Riel Group has become China's largest private dental medical institution. As of March this year, Riel Group has opened 107 branches in China, covering 15 major cities.
Rier Group also has many hidden worries. Even with such store promotion achievements, Riel Group is still questioned by the outside world as being too slow to develop. Some media reports have pointed out that Riel Group is a "slow company", and Zou Qifang is not shy about this. He said that he does not want to develop so quickly. He should first solve the survival problem and then reserve more talents before considering accelerating the development speed.
In addition, Ruier Group has also been accused by the market of excessive pricing and increased revenue but not increased profits. From the prospectus, we can see that its general dental revenue accounts for more than 50% of the total revenue, which is the company's core business. Per capita consumption is higher than other private dental clinics on the market from 2019 to 2021.
Because of revenue growth and losses continue to expand, Ruier Group is questioned for bleeding listing. According to the prospectus, from fiscal 2019 to fiscal 2021, Riel Group's revenue was RMB 1.08 billion, RMB 1.099 billion and RMB 1.515 billion, respectively, with losses of RMB 304 million, RMB 326 million and RMB 598 million respectively in three years, with a total loss of RMB 1.228 billion in three years.
Industry insiders pointed out that this is because the competition in the oral medical field is becoming increasingly fierce, and the grabbing of professional talents is very fierce. Riel Group even spends nearly 60% of its costs on the salary of dentists. This analysis is basically consistent with Zou Qifang's urgent argument for "reserving talents".
There are also analysis pointing out that Ruier Group is now listed with bloody listing and is also related to the betting agreement signed by the investor. The agreement stipulates that if it is not listed within a certain period of time, Ruier's preferred stock will be converted into current liabilities, so that the company's operating cost will become higher.
In other words, although Principal Wang is optimistic about the prospects of the medical service track, he is not so ruthless in dealing with project personnel. Zou Qifang, the president of Ruier Group, may not necessarily like capital, and even said to the media: "Invite them (capital) in, and you will still have to send them out."
According to reports, Pusi Capital, which entered Ruier Group in the C round, received 220,000 preferred shares for US$3.5 million, and sold it to investors who entered the later round for approximately US$7.38 million in 2017.
Rier Group's prospectus also confirms this statement. Based on the share sales situation on December 22, 2017, the purchase unit price of the D-3 investor multiplied by the 220,000 shares purchased by Pusi Capital, and it was concluded that Pusi Capital sold about $7.38 million, which means that Pusi Capital sold all preferred shares. Based on the previous investment of US$3.5 million, Pusi Capital's return this time was US$3.88 million. Judging from the exchange rate in 2017, Pusi Capital's investment return this time exceeded 25 million yuan.
Wang Sicong and Pusi Capital are very familiar with cash out and exit operations, which can be seen from previous investment cases.
In April 2012, Wang Sicong invested 4 million US dollars in to " Yunyou Holdings ", which was listed in Hong Kong in October of the same year, and Wang Sicong cashed out with a return of 0.78 times; in 2014, Wang Sicong purchased Ledo Game 21.3% equity , and Wang Sicong received five times return in less than a year; in 2016, "Pioneer Shares" was listed, and Wang Sicong cashed out and brought 9 times return after withdrawing; Pusi Capital also invested in South Korea Dexter, as the first film and television special effects listed company in South Korea, actually brought three times return to Wang Sicong, but after its listing, Pusi Capital also withdrew.
Wang Sicong and Pusi Capital did make a profit this time by investing in Ruier Group.
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/ Only look at investors who like /
Pus Capital seems very mysterious to the outside world, and team members, including Wang Sicong, basically do not accept media interviews.
There is such a saying about the establishment of Pusi Capital. In 2009, Wang Jianlin said that Wang Sicong did not want to join Wanda's management. In this case, Wang Sicong gave him 500 million yuan to make trouble. Then Wang Sicong used this money to establish Pusi Capital. Wang Sicong was only 21 years old at the time.
As for why Wang Sicong founded such a company, it can be seen from his conversation with the media. Wang Sicong said: "I want to know people with ideas, creative people, and people who can produce great works. I don't want to go public or cash out. If I have funds, I invest in the projects I want to invest in. There will be no short-term returns. I don't rely on this to make a living."
It can be seen that Wang Sicong joins the investment industry with the mentality of a "big player". The 500 million yuan Wang Jianlin gave to Wang Sicong is a longer-term investment, which can be confirmed by the absence of restrictions on on fund expiration date. The ultra-long-term return expectations also lay hidden dangers for Wang Sicong in the future.
The official website of Pusi Capital has a sentence: "Focus on the Internet, high-tech, pan-entertainment, big health, high-end manufacturing, new materials, consumer goods and other fields." This is the case. Pusi Capital accounts for a large proportion of the pan-entertainment and consumer goods fields in the past investments, and many investments are directly related to Wang Sicong's personal preferences, which once again proves Wang Sicong's investment mentality of "capital players".
From the perspective of Pusi Capital's investment trajectory, most of them are cultural and entertainment. According to the official website, the investment scale of Pusi Capital exceeds 3 billion yuan, and the investment cases include 32 companies including Netfish Internet Cafe, 60, Hero Entertainment, Ledo Games, Dianping, Renrenche, Hannashan, Global Digital, Ruier Dentistry, Fushouyuan, etc.
Wang Sicong loves e-sports, which is well known. His love for e-sports has even risen to the spiritual world. The BBC documentary " China's Secret " interviewed Wang Sicong. Wang Sicong said in the program that players can dig out what they lack in life in the game...
Wang Sicong began to use the funds in his hands based on his preferences. In 2011, Pusi Capital entered the e-sports industry and even invested in eight game-related companies in a row, basically forming an industrial chain . The related investment returns have basically been disclosed to the public.
In addition to Wang Sicong's investment base, Pusi Capital, Wang Sicong also deepened the entertainment industry based on the "Entertainment Discipline Inspection Commission" bank and established the "Banana Plan", mainly investing in the entertainment field, such as building idol groups, artists, etc., and signed the Korean girl group T-ara that year.
"First Financial Daily" once pointed out sharply that Wang Sicong's investment performance is very average. In the eyes of investors, Wang Sicong is not a professional investor. He never appears in venture capital activities. It is difficult to tear off the label of "playing".
Although Wang Sicong has few successful cases in investment, Hero Entertainment is an exception. In September 2015, Wang Sicong led Pusi Capital to add Hero Entertainment, with an investment amount of 100 million yuan. At that time, Hero Entertainment had been listed on the New Third Board. The following year, Wang Sicong cleared all Hero Entertainment stocks, and obtained a return of more than 50 million yuan in one battle, with a yield of up to 65%.
According to the official website of Pusi Capital, Pusi Capital has 32 important investment projects, covering multiple industries such as e-sports, entertainment, technology, and medical care. Among them, 8 companies have successfully listed, including Hero Entertainment, Fushouyuan, Wuxi Pioneer, Tiange Holdings, Ledo Games, Yunyou Holdings, Dexter, Palm Co., Ltd., etc.
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/ Wang Sicong's "Darkest Moment"/
Wang Sicong and Pusi Capital have a foundation that is enviable to outsiders. They have abundant funds, Wanda's backer, and have rich connections, but a good hand of cards has made Wang Sicong beat him to pieces.
January 3, 2020 is Wang Sicong's 32nd birthday. Although Wang Sicong wrote the description of Weibo as: "Little Wang, who is low-key", he is not low-key at all. He has to post his pet dog on Weibo when flying. On that day, Wang Sicong's 43 million followers flocked to the Weibo account of Wang Sicong to celebrate his birthday, but found that Wang Sicong set his Weibo to be visible on the same day and chose to celebrate this birthday alone because he had just experienced a major investment failure in 2019.
019 is a year when Wang Sicong is unwilling to recall except this year. This year was the "darkest moment" between Wang Sicong and Pusi Capital. Even after New Year's Day, such memories have not been eliminated.
In 2015, Wang Sicong moved forward with his personal preferences and founded Panda Live with a registered capital of 20 million yuan in July of that year and became CEO. At that time, e-sports was just being demoted. In those years, the live broadcast industry was also in its outbreak with e-sports as a gimmick. Panda Live came in a burgeoning momentum, and the number of online users was once close to Douyu and Huya, the number of people in the live broadcast industry.
Unexpectedly, Panda Live Broadcast came to an abrupt end in 2019 after four years of development. Due to a break in the capital chain, it still owed a huge amount of 2 billion yuan in debt. Because Wang Sicong, as an investor, signed a joint guarantee agreement for Panda Live, the collapse of Panda Live directly turned Wang Sicong into a debtor, and the 2 billion yuan debt was all on Wang Sicong and Pusizi themselves.
In early December 2019, some media revealed that the equity of Beijing Pusi Investment Co., Ltd. was subject to judicial freezing, which is also the main carrier of Wang Sicong's investment platform "Pus Capital".
It is incredible that the collapse of Panda Live is just the prelude to Wang Sicong's investment failure in 2019. Immediately afterwards, the main body of the "Banana Plan" Shanghai Banana Plan Culture Development Co., Ltd., received judicial assistance information, and all the equity of the company held by Wang Sicong was frozen.
This is not the end. Not only Pusi Capital and the "Banana Plan" were affected, but the equity of many companies that Wang Sicong had served as shareholders or senior executives before was frozen. According to media estimates, the total frozen equity in Wang Sicong's name at that time had reached 84.45 million yuan.
Then Beijing Second Intermediate People's Court listed Wang Sicong as the person subject to execution, and the People's Court of Jiading District, Shanghai issued a consumption restriction order to Wang Sicong. After the news of
was exposed by the media, the rumor that "Wang Sicong went bankrupt" spread wildly on major social media. At that time, the topic on Weibo even reached one million clicks and became the hot search headlines.
In fact, 2019 was not the "most unlucky" year for Wang Sicong, because he had just experienced a burst in 2018.
LeTV Sports has been independent from LeTV.com in 2014, and completed a Series A financing of 800 million yuan in May 2015. Investors include Wang Sicong's Pusi Capital. In 2018, Beijing Pusi requested Beijing Arbitration Commission and ruled that LeTV Sports would compensate for economic losses of 97.8516 million yuan. In other words, Wang Sicong lost nearly 100 million yuan in investment in LeTV Sports.
As a senior executive of LeTV Sports, his risk entries included 18 execution information, 7 breach of trust information, and 120 judicial assistance information in 2018.
Although Wang Sicongqing later owed all the debts in 2019 (some media believe that Wang Sicong used family power), the failure of this investment had a huge impact on it. This was a collapse of Wang Sicong's career, which can be seen from his "retreatment reflection" on Weibo for more than half a year.
The most serious thing is that this incident has caused the outside world to question Wang Sicong's investment and business capabilities.
This time, before Ruier Group burned 1.2 billion yuan in three years, Wang Sicong got off the car early. According to the shareholder agreement, Riel Group made a bet commitment with investors. If it fails to successfully list as of March 31, 2020, the company needs to repurchase the unredeemed preferred shares in full. Afterwards, Riel reached a new agreement with investors to modify the redemption start date to December 31, 2021.
Even in front of Tongce Medical, the "Yamao" whose has increased by more than 20 times in 5 years, and the Angel of Times, which soared by more than 180% on the first day of its listing, Wang Sicong also chose to put it in the bag.
However, his investment efforts may not be very important. Sinking in the mockery of "I miss you night", he had already lost the skin of investors.
