Chen Yi Zhou Investment Logic: The project is less than 100 million dollars to chop off

"Everyone's future investment must be considered in return." "After the first quarterly earnings conference call, Chen to the" financial daily "reporters. "I've been managing the company from an investment perspective," Chen said. "Other companies may one day not have enough cash flow, no money, but I am here, everyone will not." "In the first quarter of this year, everyone had a net loss of $3.1 million under U.S. GAAP, but by non-US GAAP, everyone had a net profit of $500,000, compared with a net loss of $11.3 million a year earlier," he said. A significant portion of this comes from investment income. The same is true for everyone's earnings from last year and the years before. In 2011, everyone turned a profit for the year, with the main income coming from about $50 million trillion in the sale of the Art Dragon stock; in 2012, everyone did not have a large investment portfolio and everyone plunged into a net loss of more than 70 million dollars. In January 2009, Chen bought 5283202 shares of the art dragon for 18.5 million dollars, accounting for 24% of the total equity of the Art Dragon, and in June, everyone owned a total of 6257382 shares of the art dragon, and Chen a boat spent 21.4 million dollars. In November 2011, Chen sold all of the art Dragon shares owned by everyone to Expedia, the world's leading hotel and travel internet group. The deal brought Chen a return of 51 million dollars for 3 years. Another example is the only product. Before the IPO, everyone had bought part of the common stock of the sole goods council, which had been sold out in the first quarter of this year. Investment for one year, everyone profits about 15 million dollars. Why is it that before the listing, the only product will be in the market after the growth of the outbreak? The goods will be listed on the NYSE on March 24, 2012. Opening price of 6 U.S. dollars, compared to the IPO price fell 7.7%, the so-called break listing. But a year later, the stock price rose 5.6 times-fold. Chen also wants to move the foreign investment-generating model inside the company. He said that the company's entrepreneurial incubation program can also be seen as an investment, "to give employees money to go inside the business, I must also consider the return, otherwise, why invest?" "In the current division of business, everyone, wireless, glutinous rice mainly by Chen a boat responsible for, games and other Chen a boat is not willing to tube project, by everyone coo Mrs Responsible." Recently, Renren's wireless sector has made a wave of personnel adjustments. Chen said, before the net, trial and error, into the market, found that the opportunity is not big, will be cut off, send people to other projects. In the first quarter earnings, the game and sticky rice net growth is quite bright spot. This season, the game's income of 26.7 million U.S. dollars, an increase of 52.9%, accounting for the total income of 57%, glutinous rice net income of 5.1 million U.S. dollars, the year-on-year increase of 102%. And the marketing cost of 22.2 million U.S. dollars, only 27.1% year-on-year growth. Chen will deploy some wireless personnel to the game and glutinous rice to strengthen the contribution of the revenue sector. Can't pay no attention to the game. From the current point of view, the game is the mainstream of domestic social platform for the transformation of the current channel. Foreign revenue to advertising-oriented, domestic is more adept at usingHouseholds collect money through entertainment. Chen says that innovative projects that are invested within everyone will be cut off if they do not see the value of 100 million of dollars in a period of time. Chen a Zhou Tan Chen, in everyone, without rules and regulations of the system, the product into the market how long time to judge how much value can bring, and this criterion, mainly from Chen personal experience. "I do products, cast products, so many years, there are so many failure experience, I see more accurate." "But this does not mean that Chen is not attached to the wireless project." In the first quarter of this year, everyone's research and development spending in the quarter was $24 million trillion, up 56.5% from a year earlier, with major research and development funding coming from mobile-sector projects and staff expansion. In wireless applications, Chen that the platform is important, but more importantly the user experience and functional requirements, from the current point of view, a single app, than the platform model of the app rose faster. In the future, everyone will invest more in everyone's client. Unlike Facebook, foreign mobile networking is more SNS-oriented, while the primary need for mobile social networking in the country is communication. The logic behind this is that in the United States, SMS tariffs are fairly cheap or even free, while the domestic SMS information is more expensive, the United States instant messaging mainly by SMS, while domestic demand, the main focus on Internet applications. Chen said that everyone's mobile client, the future will increase the weight of the communication function. But Chen a boat in investment is also more conservative, cautious. In May this year, Alibaba announced the merger of Sina Weibo, while Renren, the same social concept, had no capital performance. "I don't usually invest easily, and investment takes a handsome return." This remark also suggests that everyone will not easily follow the current domestic internet mergers and acquisitions boom. Rather than speculating on stocks, making a return on an in-house team, and not making bold investments in the future, it makes everyone's earnings multiples lower. At present, everyone has a market value of $1.14 billion, but cash and short throws are as high as $900 million. Chen said he had considered splitting the game business out of the market to obtain financing and to attract investors with better assets. However, from the current window, the timetable of the answer, but also "no comment."