Making Investing Better: Investor Education Series No. 70
【Core Ideas】
1. In March 2019, Wang Yue resigned from the position of chairman of Kaiying Network and all related positions, and disappeared after only four days, which may have been premonitioned.
2. The two co-founders of kaiying network have both had accidents, and the plunge in their stock prices is obvious.
3. The operation method is similar to That of Jia Yueting of LeTV, Wang Yue pledged almost all of his equity and prepared to retreat and run away, which seriously infringed on the rights and interests of small and medium-sized shareholders.
4, some companies like Kaiying Network lost themselves in the bubble, what fire to do, and eventually became a garbage stock, and there is no hope for the future of the company.
5. Today, some of our listed companies lack an entrepreneurial spirit, especially hope that more and more entrepreneurs with entrepreneurial spirit will emerge in the future.
Hello everyone! Welcome to The Financial Observer, I'm Bao Ran, Bao Bao. The topic we want to talk about today is: the actual controller of Kaiying Network is suspected of manipulating the securities market and has been detained, and 75,000 shareholders have fallen to the ground with guns.
【News Background】
On the evening of May 6, Kaiying Network, a listed game company, issued an announcement saying that the family of Wang Yue, the company's controlling shareholder and actual controller, received a "Notice of Detention" from the Shanghai Municipal Public Security Bureau on the same day, and Wang Yue was criminally detained on suspicion of manipulating the securities market. This is the first case in which a real controller in the A-share market has been investigated for allegedly manipulating the securities market. At this time, it has been 38 days since Kaiying Network announced that Wang Yue was missing.
"Wang Yue no longer holds a senior position as a director and supervisor in the company, and his arrest will not have an impact on the normal operation of the company." Recently, the relevant person in charge of the secretary office of the board of directors of Kaiying Network made a clarification in an interview with the media on this matter, and cut off with Wang Yue's arrest.
We see that this Kaiying Network listed on the main board of Shenzhen is also a former well-known game company, and his stock price, you see in this February of this year, in February and March, it reached five yuan and eight cents, and then all the way down, and now it has fallen to three pieces of six cents and five cents, the latest stock price, then his total market value of this circulating market value is also declining.
When it comes to Kaiying Network, I am afraid that there are many friends who love online games, especially browser games, who should be familiar with its products. For example, we see that the entire Kaiying network developed skyscrapers, Shushan legends, national miracles mu, legends of kings, Gundam Clash, Battleship World blitzkrieg, Blue Moon legends and other well-known games.
So such a company should say that it is a pity that he has come to this day, why is the stock price of Kaiying Network falling in a hurry? Let's look at another announcement Kaiying Network Co., Ltd. on the progress of the actual controller of the controlling shareholder. In March of this year, Mr. Wang Yue, the actual controller of the entire company and one of the co-founders, disappeared, and his family could not be found.
The company could not be contacted, and any contact information was used until May 6 of this year, when its family said that they had recently received a detention notice from the Shanghai Municipal Public Security Bureau. What is the charge? Mr. Wang Yue was criminally detained by the Shanghai Municipal Public Security Bureau on suspicion of manipulating the securities market.
In fact, this is not out of thin air. It should be said that on March 20, 2019, this Wang Yue resigned from the position of chairman of Kaiying Network and all related positions. After only four days of missing contact, it should be that I think, Bao Bao I think as a party, I am afraid that at that time this Wang Yue was already in love, has been on the upcoming public security department to take compulsory measures against it, has a very strong premonition, or that sentence, do not do bad things, do not fear the ghost knocking on the door.
Kaiying Network includes his other co-founder, Feng Xianchao, who holds 12.1% of his shares. Wang Yue's shareholding ratio is 21.44%, the two add up to 33.54%, it should be said that as an absolute listed company, two people together to act together to occupy more than 30% of the shares of the listed company, which is the actual controller in the absolute sense.
Then Feng Xianchao has now been summoned by the relevant departmental public security organs to cooperate with such suspected crimes in the securities market for review. Therefore, the two co-founders of a company's core, and the actual controller of the company, both have accidents, and the company's stock price has plummeted.
In July 2017, Kaiying Network purchased 51% of zhejiang Shenghe's equity for 1.6 billion yuan in cash, thus accumulating 71% of Zhejiang Shenghe's equity. That is to say, this is an acquisition, and it is reasonable to say that in the securities market, the acquisition of unlisted companies by listed companies is a very normal thing.
But the abnormal situation and clues are here: Kaiying Network requires Zhejiang Shenghe to pay cash before December 31, 2017, which is my acquisition of you. Kaiying acquired you and paid $750 million of the $1.6 billion to buy unrestricted outstanding shares of the listed company. What is it? To raise the stock price, it is locked for three years from the date of actual purchase, and the ban is lifted year by year from the following year.
From the performance of the stock price, in December 2017, the stock price of Kaiying Network reached 18 yuan per share from 10 yuan per share in January a year ago, which is also a historical high. That said, what is this actually?
Use your own money to buy a company, and then let the acquired company take out half of the money, and then buy stocks, trust the market, and then in May 2018, Kaiying Network bought and acquired 70% of the shares of Zhejiang Jiuling for 1.064 billion yuan in cash.
Why? Because according to the agreement, Zhejiang Jiuling promised to invest no less than 500 million yuan to buy Kaiying Network within one year within 12 months of the completion of the equity transfer. So we see that the whole clue is very simple to say, I spend money to take the cash of the listed company, but also the public company to acquire the company, after the acquisition of the company is finished, and then the little brother who was acquired by the little brother pays to entrust the city, what will I do after the city?
We look at it, according to the public information disclosure of the relevant securities market, this Wang Yue, as the company's largest individual shareholder and the actual controller of the company, holds such a 460 million shares, accounting for 21.44% of the entire company's shareholding, almost all of which have been pledged.
Is this familiar to everyone? We also had to bring up an old friend. Jia Yueting, the founder of the former LeTV network, and the old Jia also pledged all their stocks before running, and then no matter how many fund companies and investment companies were pitted.
After the pledge, he actually said that I first pushed the stock price up, and then used my own pledge to get the cash out, and then resigned. What a smooth set of gameplay, a standard three-piece set of gameplay, what is this actually? It is called a serious infringement on the legitimate rights and interests of this minority shareholder of the public listed company.
Don't you remember? About ten years ago, when skyworth group was listed in Hong Kong, his founder Huang Hongsheng embezzled tens of millions of Hong Kong dollars in cash from listed companies, and then transferred to Hainan to do real estate investment. In fact, in the end, this money was returned to the listed company's account, and it also made money. But sorry, according to the relevant laws and regulations, especially the securities laws and regulations of Hong Kong, you are calling this embezzlement of public funds of listed companies.
Although you are the majority shareholder and you are the founder, I'm sorry, as long as you are on the market, you are a public company. You do not go through the resolution of the board of directors, do not go through the relevant announcement. If you embezzle the company's money without permission, you are called an infringement and seriously infringe on the rights and interests of small and medium-sized shareholders.
In the same way, through such manipulation, the market price of our securities, and then raise the market value of the entire listed company, and then use this opportunity to sell their own stocks. Alas, selling doesn't have to be selling. Pledge is also a good means, right? Although there is a proportion of pledge, there is always a lot of cash in the hand.
In March 2017, Wang Yue, the actual controller of Kaiying Network, was selected into the "2016 Hurun Global Rich List", becoming the youngest richest person in China that year. However, with the suspension of the game version in 2018, the stock price of Kaiying Network continued to decline, and the company's stock price fell from a high of 19.19 yuan to the current 3.61 yuan, a decline of more than 80%.
Kaiying Network's announcement shows that at present, Wang Yue's directly held shares account for 21.44% of the total number of shares in the company, and all of his shares have been pledged, and 45.48% of them have been frozen by the court and public security organs. In addition, in addition to Wang Yue, Feng Xianchao is also under investigation by the public security organs for personal economic crimes.
Kaiying Network's announcement said that Feng Xianchao's shareholding accounted for about 12.10% of the total number of shares in the company, of which 54.13% had been frozen.
In fact, if it is really in the game industry friends will know very well, our so-called Kaiying network, he is not a leather bag company, he is not a scam company. It should be said that he actually had a very good performance in the game industry, especially in the browser game industry, around 2015, 2016, and 2017.
He has developed many popular browser games, and has also created an industry record of tens of millions of game recharges on the first day of the interview, and was once a little prodigy who can be said to be a computer and the Internet. He wants energy and energy, technology and technology, and brains. Such a person, in his thirties, a teenager with success, a successful teenager, is already very rich, why would he lose himself?
I think there may be two factors in between, very critical, what is the first factor? The development of the company's main business has lost accurate judgment at key nodes. We looked at the earliest times in the game industry, and we said it was from this authentic online game online. After the popularity of online games, the first and earliest time was the end game, World of Warcraft once occupied the vast majority of the market share, but the end game has its own characteristics.
To this day, the end game is still half of the annual output value of the entire game industry. But the end game has two of his biggest characteristics, what is the first? Investment, R & D investment is very large, and then its production cycle is very long. At the same time, it has another feature, that is, its life cycle is also very long, what is this actually a thing? It is a hard kung fu, it is a water mill kung fu, the so-called bench to sit ten years cold, it is said that the end of the tour, but once the momentum is gained, it can immediately become the position of a monopoly in the market.
What is the second one? Now we are looking at what is very popular now? Mobile games, we all know what the glory of the king, and then on the whole day on top of what to eat chicken? Right? Mobile games. Whether it is a user who loves terminal games or is now addicted to mobile games, there is still a short period in the middle of the era of terminal games and mobile games, but the era that was once popular is the point where Kaiying Network stepped on accurately, which is called page games.
Entering the html5 technology, through a browser, simply downloading a quasi-client, operating within the browser, what can be formed? Form a gameplay for the page game. The development time is short, the investment in research and development is small, the speed of going online is fast, and the speed of grabbing money is also fast, which is actually a bit like what? Like opium.
There is a saying that all cheap money, good money, easy money to make more. This company, whether it is a good person, is abolished. Why? He was reluctant to press his physical strength, energy, intelligence, and the fate of himself and the company on such a cycle of long-term high investment in research and development.
At least as the backbone of the game industry, as a well-known figure in the game industry, or a young marshal, in fact, I think it is Wang Yue or Feng Xianchao. If he is really interested in the long-term development of the game industry, he should capture the development space of mobile games in time.
But we have seen that in recent years, Kaiying Network has tried what fire? For example, this live broadcast, internet celebrity, blockchain... In today's A-share market, there are many companies that are like this. Storm used to be great, right? The earliest Storm player, Storm Video, later Storm TV, after the listing of everything, and then now how?
The founder was also reduced to the so-called untrustworthy executor, so that the company's market value fell unable to see, and then the whole company attacked everywhere, where holes were punched, every place could not hit the well water, and then finally became what? Reduced to a very garbage stock, and a company with little hope for the future.
Many of our emerging industries, traditional industries and enterprises, more are new industries, because the emerging industries will face so many so-called new opportunities of temptation, the temptation of new outlets, at this time the founder of the enterprise, the main backbone of the enterprise, the backbone team of the enterprise should make what kind of choice?
You say Tencent, the reason why Tencent can guarantee that we say bat, of these three, Tencent's market value is actually very stable, very stable, and it is not like Alibaba, first go to the market, then delist, and then run to the United States to go public.
After Tencent's entire listing in Hong Kong, in such a turbulent capital market in Hong Kong, he is a needle-like existence of the sea god. Although in the middle, last year, due to the suspension of the issuance of game editions by the General Administration of Press and Publication, which led to some twists and turns in the stock price, we saw that its stock price is still very stable, and these are the entrepreneurial spirits worthy of our admiration.
In fact, anyone in the game industry knows that page games are a transitional product, I went to the market with page games, I obtained a lot of valuable funds, and more importantly, I obtained a very good public capital market financing and refinancing entrance.
I should take advantage of this, I develop mobile games, I enter mobile games, or I enter the upstream industry of the game industry, that is, the ip copyright industry, right? Whether it's anime, or fiction, or literary copyright, etc., because these are just one of the most basic IP supports of the game, these are not done, and then run to do what? Influencers, live streams...
In fact, 360 used to be like this, what pepper live broadcast, what this and that? So you can't look at the market capitalization of 360, right? When returning to the domestic A-share listing, it was once a unique scenery. But Zhou Cannon, I see that Zhou Hongyi doesn't dare to speak now, and then the whole stock price fell into a mess. In fact, this is the spirit of entrepreneurship, and today we lack the most in China's listed companies.
In this, we especially hope that the newly opened science and technology innovation board is good, as well as our main board, the new third board does not mention it, then we hope to see more and more entrepreneurs with entrepreneurial spirit, rather than like this very pity, like Wang Yue, very young entrepreneurs and entrepreneurs, in the end will become a two-sided do not rely on, and then hope to through a form of manipulating stock prices, manipulating the securities market form to achieve their own financial so-called realization, and money fell into their own pockets, What a shame.
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Source: A Stream of Qingquan Cultural Media
Disclaimer: The above content is for reference only and does not constitute specific operational advice, according to which the operation profit and loss is at your own risk.