▲ Fun Shop CEO Luo Min 
▲ Fun shop revenue, net profit The Fun Store recently released the unaudited financial reports for the fourth quarter and the full year of 2017. The financial report showed that the total revenue of FunShop in the fourth quarter reached 1.492 trillion yuan (US$229.2 million), an increase of 108.4% year-on-year; , Net profit increased from 322 million yuan in the same period last year to 559 million yuan, an increase of 73.7%. The total revenue of Fun Shop in 2017 increased by 108.4% from RMB 7.156 billion in the same period of last year to RMB 14.912 billion. Based on non-US general standards, the net profit was RMB 2.229 billion, compared with RMB 599 million in the same period of last year. The increase reached 272.1%. Prior to the publication of this financial report, Luo Min announced that he would not receive a penny salary and bonus before the company's market value reached 100 billion US dollars. However, behind the 100 billion market value prospects and seemingly high growth of Fundian, there are still many hidden dangers. High growth under supervision The Fun Shop mainly consists of two businesses, cash loan and car-phased shopping. The latter is still a new business on-line in November 2017. The financial report shows that as of the end of January, Fun Shop opened 175 car stores. In 2017, a total of 284 cars were leased out. As of March 10, 2018, more than 4,800 cars were leased out. After opening the Dabai Auto Phase App, it was found that the top three models were 2018 models with a guide price of 59,900 yuan and 1.5L manual happiness version. The guide price was RMB 65,800 for the 2017 Baojun 310W 1.5L manual luxury model, and the guide price was RMB 95,600. The 2017 Jetta 1.5L automatic fashion. The price of three cars are not more than 100,000 yuan. Even if calculated according to an average of 100,000 yuan per vehicle, the total flow of 4,800 cars can only bring a small part of the turnover. 
▲ Dabai Auto Phases App Screenshots This also means that, with the tightening of supervision, the secret to the rapid growth of Fun Shop is still cash loans. In the fourth quarter, the relevant departments gradually tightened their supervision on cash loans. On November 21, the Office of the Leading Group for Internet Financial Risks Special Remedy issued the Notice on the Immediate Suspension of Network Microcredit Companies, which requires small amounts at all levels. The supervision department of a loan company shall not newly approve the establishment of an online microfinance loan company, and prohibits the newly approved microfinance loan companies from inter-provincial (district, city) micro-loans. On December 1st, the Leading Group Office of the Internet Financial Risk Special Rectification Work and the P2P Network Loan Risk Restructuring Leading Group Office jointly issued the “Regulations on Regulating the 'Cash Loan' Business”, which focused on the current exposure of cash loans. Give norms. However, despite the tightening of supervision, the cash loan business of Fun Shop is still growing at a rapid rate. CFO Yang Jiakang of the Fun Club said on the conference call that last year, the balance of the loyalty store loan was 10 billion yuan. This year's figure will be much higher than this, and it has already exceeded this figure. This amount also far exceeds the loan limit of the small loan license held by the shopping mall. In 2016, Fun Shop passed two main subsidiaries of the Internet micro-finance business and obtained small loans with a loan limit of RMB 3 billion and RMB 2.7 billion respectively. Licences. In the case of the suspension of approval of new business, it is also a matter of whether or not so many loan balances are compliant. User growth difficulties In order to attract more users to make loans, Luo Min has made a lot of effort, and even entered the battle for live answer. On January 9, 2018, Yingke founder Feng Yousheng announced on WeChat's circle of friends that the Fun Shop became the first advertiser of Yingchao’s online answer product, Cheese Superman, with an advertising fee of RMB 100 million. Since then, the host has started a fancy broadcast, and has also become the first example of a live answer. After tasting the sweetness, the Fun Shop also launched a live answer in the Dabai Auto App two weeks later. 
▲ mobile phone screenshot However, during the conference call, CFO Yang Jiakang responded to the user growth strategy by saying, 'The company also conducted marketing via Q&A, spending on RMB 1-2 million, not much, and it worked well.' The 12 million in the store's mouth and Yingke’s announcement of 100 million yuan were 50-100 times worse. It is also unexpected to reflect the fake data on the live answer. Back to Fun Shop. As of December 31, 2017, Fundian Cash Loans had a total of 62.4 million registered users, and the number of active borrowers reached 6.9 million. After the third quarter, Fun Shop had a total of 56.6 million registered users and 7.5 million active borrowers. That is to say, although the number of registered users increased by 5.8 million, the number of active borrowers at Fun Shop fell by 600,000. 
▲Comparison of Q3 and Q4 Fun Shop users in 2017 In addition to the poor growth rate of its own users, the cooperation with Ant Financial is also in a dilemma. After the issuance of the cash loan supervisory documents, Alipay, in order to be more compliant, requires that the comprehensive rate of loan products on Alipay Lifeline does not exceed the annual interest rate of 24%. Moreover, the interest rate of 24% is the actual interest rate, and the interest amount includes borrowings. Interest and all other charges. However, in the Fun Shop’s own app, it will continue to charge the full amount of annualized interest within 36%, a full 12% difference! Similarly, borrowing money in stages, there is still no discussion about whether such a large difference in different platforms will infringe on consumer rights, but a 12% reduction in interest would be tantamount to a decline in revenue and profit. Earlier in the prospectus listed on the shop, it disclosed the decrease in the cost of the retail store market. The retail store market and sales expenses in 2015 were 193 million yuan, accounting for 82% of the total revenue, but by 2016, These two figures were reduced to 182 million yuan and 12.6% respectively. In the first half of 2017, the figure was reduced to 8.2%. The time at which this part of the cost was substantially reduced coincided with the time point of the ant gold investment shop. 
▲ App Store screenshot The reliance on the ant gold suit by the shop is not only reflected in the reduction of market expenses. Until the time of submitting the prospectus, the Fun Shop and the two applications that came in phases did not put any advertisements in the app store. According to PingWest's report, Luo Min was not even interested in the channel of borrowers other than Alipay, and was only considered as a large-scale marketing promotion. , Is a group advertising SMS. After the supervision issued and the Alipay release regulations, some users found that the entrance of the Fun Shop in the Alipay App was missing. The relevant person in charge of this Alipay said that it may be due to algorithm optimization. Yang Jiakang explained that, 'Most of the deals now take place on the Fun Shop's own platform, so the impact is very small. 'But in the App Store shopping category only ranked 141, this sentence again How much credibility is there? Rely on the staged value of 100 billion yuan? Before the financial report was released, Luo Min also brought a heavy news: Do not receive a penny salary and bonus before the company's market value reached 100 billion US dollars. To know that just listed on the break through the market value of billions of stores, in the regulatory tightening and questioning the business model, the stock price has long been reduced. As of March 14 closing, the market value of the Fun Shop is only 4.684 billion, distance 100 billion US dollars Have to turn over 20 times. 
▲The market value (closed on March 14), Luo Min has a long way to go. What is the concept of market value of 100 billion U.S. dollars? As of March 14th, Baidu's market value was 89.904 billion yuan, Jingdong's market value was 62.546 billion yuan, and Netease's market value was 41.238 billion yuan. This is for retail shops that only depend on cash loans and car-phased shopping. It seems very far away. Some analysts also said that Luo Min’s move was intended to avoid taxation. Huang Qifan, deputy chairman of the National People's Congress’s Financial and Economic Committee, once said: 'Some corporate executives get a dollar salary, so that they can avoid paying personal income tax, and then count personal expenses in the company's Costs. ' When asked when it can reach the target of 100 billion yuan market value, Luo Min said that this year the company's sales target is 100,000 units, 'finance leasing and auto finance leasing, auto new retail's track is long enough. If we can put If these two businesses do well, $100 billion is actually a goal that is not difficult to achieve. According to Yang Jiakang’s calculations, according to Yang Jiakang’s calculation, if we can achieve sales of 100,000 cars, we can generate revenues of 500 million yuan. “The sales of 100,000 cars is 10 billion yuan, with 5% of the industry. With respect to commission standards, the automobile sales business can contribute RMB 500 million in revenue to the company. These revenues can fully cover the 175 retail points we set up for car sales this year.
However, in 2018, more than 2 months passed, and the sales of automobiles were only 4,800. In today's car market is gradually saturated, car manufacturers have a decline in profits, it is difficult to achieve a 20-fold increase. Fortunately, Fun Shop delivered a good financial report in 2017: Revenue increased by 108.4% year-on-year, and net profit increased by 73.7%. However, behind the rapidly growing financial report data, there are still many hidden dangers.
Whether the cash loan is compliant, the car is uncertain ahead of schedule, and there has been a time bomb like the cooperation with the ant gold suit, which has become a sword hanging on the head of the shop. And when will Luo Min's lofty ambition for market value of 100 billion yuan arrive?
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